- Unilever
- 19 March 2026 10:05:17
Source: Sharecast
According to the Financial Times, citing people familiar with the talks, discussions between the companies in recent months, which have now ended, were over a merger of Unilever’s food business and Kraft Heinz’s condiments division.
A combination would have created a new entity worth tens of billions of dollars.
It was understood the talks between the two took place ahead of the Kraft Heinz’s decision in February to halt a planned break-up and commit to invest $600m behind a turnaround under chief Steve Cahillane, who joined in January.
The proposed split would have separated its slower growth grocery-store staples, such as Oscar Mayer meats and Lunchables meal kits, from its faster-growing sauces, spreads and seasonings business, which houses Heinz ketchup and Philadelphia cheese, the FT noted. Kraft Heinz also sells mayonnaise under both the Kraft and Heinz brands.
Dan Coatsworth, head of markets at AJ Bell, said: "Hot on the heels of demerger talk for Unilever’s food assets, there’s a new twist to the story. Reports suggests Unilever has held talks with Kraft Heinz to merge their food assets into a combined entity, creating a powerhouse for ketchup and mayonnaise.
"Essentials in homes around the world, there is plenty of competition for these food items, yet Unilever and Kraft own the big brands. That makes the prospect of a merger more interesting.
"While they’ve found life a bit harder in recent years, they stand to prosper in stronger economic conditions. Combining operations could achieve economies of scale for purchasing raw materials and potentially tasty operational savings.
"Reports suggest talks are no longer live, but the idea of a combination has now been planted and that might prompt shareholders on both sides to push for more information on how a merger could work, and if it’s worth pursuing."
At 1005 GMT, Unilever shares were down 1.1% at 4,659p.